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CC - CONSENT ITEM: Approval of a Five-Year General Services Agreement with Clean Energy for the Maintenance and Repair of the Compressed Natural Gas (CNG) Refueling Station in an Amount Not-To-Exceed $1,301,592.
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Meeting Date: November 10, 2025
Contact Person/Dept: Dalynna Moser/Transportation Department
Phone Number: (310) 253-6541
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (11/06/2025); Clean Energy (11/06/2025)
Department Approval: Diana Chang, Chief Transportation Officer (10/21/2025)
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RECOMMENDATION
Staff recommends the City Council approve a five-year general services agreement with Clean Energy for the maintenance and repair of the compressed natural gas (CNG) Refueling Station in an amount not-to-exceed $1,301,592.
BACKGROUND/DISCUSSION
Since 1997, Culver City has owned and operated its own CNG Refueling Station. The station operates 22 hours per day to meet the CNG refueling needs of more than 100 City vehicles. In the last fiscal year, almost 500,000 gallons of CNG was disbursed at the Refueling Station. The City’s CNG Refueling Station is a sophisticated, maintenance-intensive system, and the skills needed to perform maintenance and repairs are very specialized. Staff has determined that the most cost-effective way to ensure the reliability of the CNG Refueling Station is to enter a contract with a firm specializing in this area. The existing maintenance contract will expire on December 31, 2025, and the City is in need of a new service contract to ensure the Refueling Station and its equipment continue to function at their intended efficiency.
A Request for Proposals (RFP) was released on August 21, 2025, and closed on October 2, 2025. A mandatory job walk was held on September 3, 2025, and it was attended by six prospective proposers. Proposals were later received from two contractors:
1) Clean Energy
2) Wayne Perry, Inc.
Proposals were reviewed for their responsiveness to the scope of work identified in the RFP and evaluated based on several factors including qualifications, experience, responsiveness to the scope of work, fees, and proposed schedule. After carefully reviewing and scoring each proposal, the evaluation team’s rankings were compiled, and Clean Energy was found to be the highest-ranking proposer. Staff found the proposal submitted by Clean Energy to be responsive and complete, and determined that the outlined products and services best meet the City’s operational requirements. The total cost of the proposal over the five-year period of the contract is $1,301,592.
Clean Energy has been in business since 1997. They are a full technical contractor with a reputation as a leading provider of CNG services. They own, operate, and/or supply 582 natural gas fueling stations in 43 states, making them the largest provider of CNG services in the United States. They also played an essential role in the building of the City’s Refueling Station. Current customers include the City of Burbank, City of Los Angeles, City of Beverly Hills, and City of Long Beach, among others. Staff is confident that Clean Energy will provide the City with efficient and effective service.
This new contract, effective January 1, 2026, will cover a three-year term with two, one-year renewal options. The scope of work includes monthly preventive maintenance (PM) of the station’s three compressors, repairs - both routine and emergency, and all ancillary equipment. The scope of work also includes the stocking and supply of parts and materials, as well as three compressor overhauls. These overhauls involve a comprehensive process of disassembling, inspecting, repairing, and reassembling each compressor unit to restore it to "zero hour" or manufacturer specifications, ensuring safety, optimal performance, and extended service life. The summary of the anticipated expenses for a five-year contract is as follows:
Year 1 to 3
• Monthly PM ($2,250 per month for 36 months): $81,000
• Non-Scheduled Repairs Hours (Estimated 972 hours at $235/hour): $228,420
• 20% Contingency for Emergency Call-Outs: $61,884
• PM/Repair Subtotal: $371,304
Year 4
• Monthly PM ($2,400 per month for 12 months): $28,800
• Non-Scheduled Repair Hours (Estimated 324 hours at $250/hour): $81,000
• 20% Contingency for Emergency Call-Outs: $21,960
• PM/Repair Subtotal: $131,760
Year 5
• Monthly PM ($2,600 per month for 12 months): $31,200
• Non-Scheduled Repair Hours (Estimated 324 hours at $260/hour): $84,240
• 20% Contingency for Emergency Call-Outs: $23,088
• PM/Repair Subtotal: $138,528
Contract Total (including the two one-year renewal options)
• PM Cost: $141,000
• Projected Repair Cost: Not-to-exceed $500,592
• Projected Parts Expense: Not-to-exceed $500,000
• Compressor Rebuilds (Overhauls performed at 20,000 and 40,000 hours of use): $160,000
• Total: $1,301,592
FISCAL ANALYSIS
The Adopted Budget for Fiscal Year 2025-2026 includes sufficient funding in Account No. 20370210.600100 (Transportation Operations Facilities - Repair & Maintenance Building) to cover the approximately $371,304 cost of the first year of the agreement. This account can be found in the Transportation Department section of the budget book on page 553. Funds for future years of the agreement will be included in the budget in future fiscal years. All services will be paid for with Transportation Department funds. No General funds will be used.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Approve a general services agreement with Clean Energy for the maintenance and repair of the compressed natural gas (CNG) Refueling Station in an amount not to exceed $1,301,592;
2. Authorize the City Attorney to review/prepare the necessary documents; and
3. Authorize the City Manager to execute such documents on behalf of the City.